Scott Goodman, a co-founder of Sterling Bay who left to start his own firm is expanding his investment in the medical office sector.
In a joint venture with Dallas-based Landes Group, Goodman’s firm, Farpoint Development, bought a medical office building that is part of the Silver Cross Hospital Campus in suburban Chicago’s New Lenox for $88 million last week, property records show.
Ahead of the sale, NAI Hiffman negotiated a long-term lease renewal with Silver Cross Hospital, the anchor tenant in the 175,000-square-foot building, a press release from NAI Hiffman states. Other tenants in the building, which is 96 percent occupied, include Shirley Ryan AbilityLab at Silver Cross, Duly Health and Care, DaVita, Rush University Medical Center and UChicago Medicine, according to the release.
Farpoint and The Landes Group chose the property in part because it is in Will County, a fast-growing region of Chicago’s suburbs, a press release stated. The county saw a boost in multifamily building sales last year, according to a November report from Chicago-based brokerage Interra Realty.
The purchase points to Farpoint’s continued interest in the medical office sector, although the company also invests in and develops in other sectors, such as industrial, multifamily and retail properties.
Farpoint also owns The Burr Ridge Medical Center, an Advocate Medical Care office in Burbank, a Northwestern medical care office in Deerfield and a mixed-use medical and retail complex in Chicago’s Lincoln Park, according to its website.
It hasn’t been all smooth sailing for Farpoint’s medical-based developments.
Goodman launched Farpoint in 2016, and a year later the firm was chosen along with a team of local developers to lead a city-backed, multibillion-dollar megadevelopment called Bronzeville Lakefront at the former Michael Reese Hospital site. When completed, the sprawling development will feature medical office space among other uses.
Getting the city’s approval was an early win, but the site is still in pre-development and has faced financing headwinds. It has also come up as a potential site for a Chicago Bears stadium, amid a drawn out back-and-forth debate between government officials and leaders of the Bears organization.